I have to agree that the Virgo III is definitely better than the original Virgo. I think there is a lot to be said for the new ring radiator tweeter they use now. In addition, I found the mids to be very smooth and detailed.
All the reports of being really transparent speakers is true. My wife and I felt so comfortable listening to them that at one point when I was listening to Radiohead's Amnesiac CD I actually forgot I was in the audio store. I only "woke up" when the salesman came back into the room.
I really got into these speakers - they are very likeable IF you have the source components to back them. I've read several posts from people who didn't like them. In a few instances, I didn't feel (my opinion) the source gear was correctly matched for the speakers. You need to be careful on what you run them with, but if you do you'll be in for quite a treat.
However, I also found the bottom end to be very thin. I heard them in an acoustically treated room, and didn't feel their frequency responce matched what I heard. I don't feel it was a source or amplification issue either. I heard them on the Classe CAM-350 monoblocks, Classe CP-47.5 preamp, and the Musical Fidelity Nu-vista 3D CD player (cables were all Tara Labs.)
They would be a perfect match with a really good subwoofer such as a REL or even an Audio Physic. I found the combination to be very good, and definitely do yourself a favor and audition them. The worst that could happen is you decide not to buy them.
After all that, I ended up not buying the Virgo III's because of the lack of LF response, and I didn't want to deal a subwoofer (which would have been a perfect match in my opinion.) In the end, I actually decided to spend the extra bucks, and buy the Avanti III's instead which have plenty of low frequency response to throw around plus a fuller midrange (however all that comes at a very substantial price difference compared to the Virgo's.)
I'd like to add one additional comment about the Audio Physic speakers. They require at least 1-2 weeks worth of constant playing to fully break-in. I actually thought I made a mistake when I bought the Avanti's as they didn't sound as wonderful as the Virgo's did out of the box. However once they broke-in, they're absolutely wonderful speakers that I have no plans of ever parting with for many years to come.
Now if I could just make-up my mind so easily on new pre-amp and amp, life would be good...